COB-RGB

 

 

 

Late Items

 

Council  Agenda

 

 

 

10 December 2014

 

 

 

 

 

ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

 

 

 


CITY OF BUSSELTON

Late Items FOR THE Council  MEETING TO BE HELD ON 10 December 2014

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

0....... Reports. 3

L.1           Finance Committee - 4/12/2014 - FINANCIAL ACTIVITY STATEMENTS – PERIOD ENDING 31 OCTOBER 2014. 3

L.2           Finance Committee - 4/12/2014 - LIST OF PAYMENTS MADE – OCTOBER 2014. 28

L.3           Finance Committee - 4/12/2014 - BUDGET ADJUSTMENT REPORT - SCHOOL FOOTPATHS SWDC UNSPENT GRANT FUNDS. 56

L.4           Finance Committee - 4/12/2014 - GEOGRAPHE LEISURE CENTRE - BUDGET AMENDMENT REQUEST AIR HANDLING.. 64

L.5           Finance Committee - 4/12/2014 - APPLICATION FOR EXEMPTION FROM RATING - BUSSELTON GOSPEL CHAPEL INC. 68

L.6           Finance Committee - 4/12/2014 - EXCAVATION OF NEW CELL AT DUNSBOROUGH WASTE FACILITY. 74

L.7           Finance Committee - 4/12/2014 - FOOTPATHS AND CYCLEWAYS FUNDING POLICY. 79

L.8           Finance Committee - 4/12/2014 - GEOGRAPHE LEISURE CENTRE - BUDGET AMENDMENT REQUEST SPA PUMP REPLACEMENTS. 86

17..... Confidential Reports. 89

17.1        Finance Committee - 4/12/2014 - APPLICATION FOR RATE EXEMPTION - SOUTH WEST REFUGE INC.

This report contains information of a confidential nature in accordance with Section 5.23(2(f)(iii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, could be reasonably expected to prejudice the maintenance or enforcement of a lawful measure for protecting public safety

 


Council                                                                                      3                                                             10 December 2014

0.               Reports

L.1             Finance Committee - 4/12/2014 - FINANCIAL ACTIVITY STATEMENTS – PERIOD ENDING 31 OCTOBER 2014

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

Manager, Finance and Information Technology - Darren Whitby

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Financial Activity Statements - Period Ending 31 October 2014  

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Pursuant to Section 6.4 of the Local Government Act (‘the Act’) and Regulation 34(4) of the Local Government (Financial Management) Regulations (‘the Regulations’), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted/ amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 31 October 2014.

 

 

BACKGROUND

 

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis; and are to include the following:

 

§   Annual budget estimates

§   Budget estimates to the end of the month in which the statement relates

§   Actual amounts of revenue and expenditure to the end of the month in which the statement relates

§   Material variances between budget estimates and actual revenue/ expenditure/ (including an explanation of any material variances)

§   The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting of 30 July 2014, the Council adopted (C1407/190) the following material variance reporting threshold for the 2014/15 financial year:

 

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2014/15 financial year to comprise variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/ Statement of Financial Activity report, however variances due to timing differences and/ or seasonal adjustments are to be reported on a quarterly basis.  

 

STATUTORY ENVIRONMENT

 

Section 6.4 of the Local Government Act and Regulation 34 of the Local Government (Financial Management) Regulations detail the form and manner in which a local government is to prepare financial activity statements.    

 

RELEVANT PLANS AND POLICIES

 

Not applicable.

 

FINANCIAL IMPLICATIONS

 

Any financial implications are detailed within the context of this report.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. The achievement of the above is underpinned by the Council strategy to ‘ensure the long term financial sustainability of Council through effective financial management’.

 

RISK ASSESSMENT

 

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a treatment/ control that assists in addressing this risk.   

 

CONSULTATION

 

Not applicable.

 

OFFICER COMMENT

 

In order to fulfil statutory reporting requirements, and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

 

§ Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

 

 

§ Net Current Position

This report provides details of the composition of the net current asset position on a year to date basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

§ Capital Acquisition Report

This report provides year to date budget performance (by line item) in respect of the following capital expenditure activities: 

Land and Buildings

Plant and Equipment

Furniture and Equipment

Infrastructure

 

§ Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and also associated interest earnings on reserve funds, on a year to date basis. 

 

§ Reserve Transfers to Municipal Fund

This report provides specific detail in respect of expenditures being funded from reserves.  

 

Additional reports and/ or charts are also provided as required to further supplement the information comprised within the statutory financial reports.

 

COMMENTS ON FINANCIAL ACTIVITY TO 31 OCTOBER 2014

   

Operating Activity

 

§  Operating Revenue

 

As at 31 October 2014, there is a variance of +0.7% in total operating revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Operating Grants, Subsidies and Contributions

+71%

+$604

Other Revenue

+31%

+$62

Non-Operating Grants, Subsidies and Contributions

-14%

-$240

Profit on Asset Disposals

+628%

+$7

 

A summary of the above variances is provided as follows:

 

Operating Grants, Subsidies and Contributions (+$604K)

This variance is primarily attributable to:

§ The earlier than projected raising of an invoice for the (half-yearly) Busselton Jetty Licence Agreement instalment (+$346K)   

§ The receipt of an unbudgeted natural disaster claim in respect of September 2013 storm damage (+$99K)

§ The receipt of an unbudgeted Local Government Insurance Services Scheme surplus distribution (+$50K)

§ A range of minor grants and reimbursements received in advance of associated budget projections   

      

Other Revenue (+$62K)

This variance is primarily attributable to:

§ Fines and penalties revenue (primarily parking fines) is presently falling short of year to date budget estimates (-$20K)

§ A scheduled transfer of bond monies for Birchfields landscape maintenance is presently falling short of year to date budget estimates (-$23K)

§ The ‘accounting’ recognition of the value of a heavy plant item trade-in, with this revenue to be reversed in November (+$100K)  

 

Non-Operating Grants, Subsidies and Contributions (-$240K)

The current variance is primarily attributable to:

§ The receipt of additional developer contributions over year to date budget estimates (+$555K)

§ The accounting recognition of a donated fire tender from DFES (+$117K)

§ Timing differences associated with the receipt of capital grant funding including, but not limited to, the Airport terminal building and other Airport related infrastructure works, and also coastal protection/ boat-ramp works (-$913K)

   

Profit on Asset Disposals (+$7K)

The current variance is primarily attributable to book profits on the sale, through auction, of obsolete computer equipment and sundry plant items. In most cases, the items had a zero written down value, with any funds received representing a book profit on disposal. It should be noted that this is an accounting entry only, and has no direct impact on the Net Current Position.       

 

§   Operating Expenditure

 

As at 31 October 2014, there is a variance of -9.8% in total operating expenditure, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Materials and Contracts

-38%

-$2,147

Utilities

-24%

-$178

Depreciation on Non-current Assets

+19%

+$657

Insurance Expenses

-12%

-$91

Allocations

-17%

-$107

Interest Expenses

-34%

-$113

Loss on Asset Disposals

+280%

+$34

 

A summary of the above variances is provided as follows:

 

Materials and Contracts (-$2,147K)

Due to the nature of this expenditure category, variances are evident across a broad range of activities. However, the major variances, which are predominantly due to timing differences, include:

§ Collective contractor expenditure is presently $1,180K below year to date budget estimates and includes, amongst others, recycling contractors (-$346K), Busselton Jetty contractors (-$169K), coastal protection related contractors (-$145K), Vasse & Provence specified area rate contract maintenance works (-$167K) and also numerous building contractor related works (e.g. Nautical Lady Lighthouse demolition of $150K)

§ Computing related expenditure (e.g. software licence renewals) is presently $235K below year to date budget estimates  

§ Collective consultancy expenditure is presently $207K below year to date budget estimates

§ Building maintenance services (including contract cleaning and general maintenance) are presently $126K below year to date budget estimates

§ Leasing expenditure is presently $97K below year to date budget estimates

 

The remainder of the variance is attributable to a variety of budget shortfalls in contractor expenditures, material purchases, legal expenses, maintenance of plant and equipment and non capital asset acquisitions. However, as previously mentioned, the current collective variance is primarily as a result of budget timing matters at this juncture.    

 

Utilities (-$178K)

This variance is primarily attributable to timing differences in the levying of utility invoices, including water consumption charges, and to a lesser extent electricity charges. As a result of the repealing of the carbon tax, it is estimated that the City’s electricity charges will reduce by up to $70K during 2014/15. However the actual extent of any savings will be dependent upon, amongst others, overall electricity usage during the financial year and the associated performance against budget estimates.           

 

Depreciation on Non-current Assets (+$657K)

This variance is primarily attributable to the Buildings fair value valuation (as at 30 June 2014), coupled with the significant value of donated assets brought to account as at last financial year end. The depreciation budget is developed reasonably early in the annual budget process, based on financial year end projections. Whilst generally accurate, this approach has this year been impacted by the aforementioned activities, the outcomes of which were not known until very late in the 2013/14 financial year. It should be noted however that depreciation expense is reversed as a non cash adjustment, and as such has no net effect on the Net Current Position.                       

 

Insurance Expenses (-$91K)

This variance is primarily attributable to property and plant insurance premiums, which presently reflect variances of -$46K and -$52K respectively. Whilst a potential saving may be achieved in respect of the property premium, the City’s insurer does issue subsequent invoices in respect of plant insurance, to reflect plant adjustments throughout the course of the financial year.                  

 

Allocations (-$107K)

This activity incorporates numerous internal accounting allocations. Whilst the majority of individual allocations are administration based (and clear each month), the activity also includes plant and overhead related allocations. Due to the nature of these line items, the activity reflects as a net offset against operating expenditure, in recognition of those expenses that are of a capital nature (and need to be recognised accordingly). Variances, particularly early in the financial year, are not uncommon, as the activity is highly dependent upon a range of works related factors.                

 

Interest Expenses (-$113K)

This variance is attributable to the initial repayment on the Civic and Administration Centre loan facility. The facility was drawn on 5th August 2014 and in order to have an initial repayment on 30 September 2014, the interest component of the first repayment was lower than budget projections. However, this meant that the initial principal repayment was higher than projected in the budget, as is reflected in the ‘Total Loan Repayments – Principal’ capital expenditure activity.           

 

Loss on Asset Disposals (+$34K)

This variance is due to book losses on the sale, through auction, of obsolete computer equipment, sundry plant items and a range of light vehicles. The predominant (single) book loss ($11K) relates to the write off of a boat ramp structure at Scout Road. It should be noted that this is an accounting entry only, and has no direct impact on the Net Current Position.       

 

Capital Activity

 

§  Capital Revenue

 

As at 31 October 2014, there is a variance of +1.5% in total capital revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Transfers from Restricted Assets

+30%

+$319

 

A summary of the above variance is provided as follows:

 

Transfers from Restricted Assets (+$319K)

This variance is attributable to the (unbudgeted) repayment of bonds and deposits. Due to the nature of the transactions, this variance has no direct impact on the Net Current Position.    

 

§  Capital Expenditure

 

As at 31 October 2014, there is a variance of -9.8% in total capital expenditure, with the following categories exceeding the 10% material variance threshold: 

 

Description

Variance

%

Variance

$000’s

Plant and Equipment

-28%

-$122

Furniture and Office Equipment

-39%

-$61

Infrastructure

-64%

-$3,388

Total Loan Repayments - Principal

+29%

+$89

Advances to Community Groups

-100%

-$30

Transfers to Restricted Assets

+172%

+$593

 

The attachments to this report include detailed listings of the following capital expenditure (project) items, to assist in reviewing specific variances:

§   Land and Buildings

§   Plant and Equipment

§   Furniture and Office Equipment

§   Infrastructure

 

A summary of the remaining variances is provided as follows:

 

Total Loan Repayments – Principal (+$89K)

This variance is attributable to the initial repayment on the Civic and Administration Centre loan facility. The facility was drawn on 5th August 2014 and in order to have an initial repayment on 30 September 2014, the principal component of the first repayment was higher than budget projections. However, this meant that the initial interest repayment was lower than projected in the budget, as is reflected in the ‘Interest Expenses’ operating expenditure activity.           

 

Advances to Community Groups (-$30K)

This matter relates to the drawdown of the budgeted self-supporting loan of $30K in favour of the Busselton Football and Sportsman’s Club; to carry out repairs to the Bovell Park football clubrooms. It has been advised that the repairs/ renovations are proposed to commence early next calendar year, after the Southbound event.        

 

Transfers to Restricted Assets (+$593K)

The favourable variance is primarily due to the receipt of developer contributions (predominantly pertaining to the Vasse Newtown and Via Vasse subdivisions) totalling approximately $853K, along with bond and deposit payments totalling approximately $86K; both against a year to date budget of $346K). It should be noted however that performance in this activity has no direct impact on the City’s net current position.  

 

BUDGET VARIATIONS AND OTHER ‘KNOWNS’

 

§ Actual principal and interest repayments on the Civic and Administration Centre borrowing facility for 2014/15 will be approximately $84K less than the annual budget projection by financial year end. This represents a budget saving in this amount.

 

§ The natural disaster claim (September 2013 storm) represents windfall revenue in the current financial year of $99K, as the associated expenses were incurred in the previous financial year.   

 

§ As noted in the Operating Grants, Subsidies and Contributions comments, the City has recently received an unbudgeted scheme surplus distribution of $50K from Local Government Insurance Services, based on the scheme’s 2013/14 financial year performance. Whilst this represents windfall revenue, the City has been required to make a further (unbudgeted) worker’s compensation premium adjustment payment of approximately $31K (in respect of the 2010/11 fund year), which partly offsets the surplus distribution.         

  

CONCLUSION

 

The City’s financial performance to the end of October 2014 is considered satisfactory, with no adverse trends evident at this time. The major operating revenues (i.e. rates and fees and charges) are both tracking in line with budget estimates. Whilst more significant variances are apparent in the operating expenditure area (e.g. materials and contracts), this level of variance is not uncommon at this time of the financial year. With regards to capital activities, both revenue and expenditure activities are ‘notionally’ inflated by developer contributions and bond and deposit movements, albeit these have no direct impact on the net current position. Furthermore, and whilst the capital acquisition and construction budget is presently some $3.5M below year to date budget estimates, this is generally in line with expectations at this time of the year.  

 

OPTIONS

 

The Council may determine not to receive the statutory financial activity statement reports.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2014, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

Note:                 As detailed in the Officer Report , the natural disaster claim reimbursement of $99K and the Insurance Scheme Surplus distribution of $50K, both represent windfall revenue in the 2014/15 financial year. Also, and primarily due to the lower than projected interest rate obtained for the Civic and Administration Centre borrowing, net loan repayments for 2014/15 will be approximately $84K less than the adopted budget projections. The Committee’s desire was to have the value of the savings and reduced (net) loan repayments quarantined, via a transfer to the Infrastructure Development Reserve.          

 

 

 

 

COMMITTEE RECOMMENDATION 1

                                                                                                                ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.    Amends its 2014/25 annual budget to recognise the following unbudgeted revenues:

 

Description

Account Number

2014/15 Adopted

Budget

$

2014/15 Amended Budget

$

Variance

$

Roads –  Reimbursements: Storm Damage Sept 2013

545.M9996.1515.2043

                0

99,092

+99,092

Financial Services – Insurance Reimbursements

211.10200.1509.0000

0

50,336

+50,336

TOTAL

 

0

149,428

+149,248

 

2.    Amends it 2014/15 annual budget to reflect reduced (net) loan repayments associated with the Civic &

Administration Centre borrowing facility of $18M, as follows: 

 

Description

Account Number

2014/15

Adopted

Budget

$

2014/15 Amended Budget

$

Variance

$

Finance & Borrowing (P4) – Interest Expenses

213.10221.3555.0000

934,790

720,244

-214,546

Finance & Borrowing (P4) – Principal Repayments

213.10221.8601.0000

524,301

644,620

+120,319

Finance & Borrowing (P4) – Guarantee Fee

213.10221.3663.0000

0

10,308

+10,308

TOTAL

 

1,459,091

1,375,172

-83,919

 

3.    Amends its 2014/15 annual budget to reflect the aforementioned savings and expenditure reductions,

totalling $233,167, being transferred to the Infrastructure Development Reserve

 

 

COMMITTEE RECOMMENDATION 2 AND OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2014, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

 

 


Council

11

10 December 2014

L.1

Attachment a

Financial Activity Statements - Period Ending 31 October 2014

 


 


Council

13

10 December 2014

L.1

Attachment a

Financial Activity Statements - Period Ending 31 October 2014

 


Council

15

10 December 2014

L.1

Attachment a

Financial Activity Statements - Period Ending 31 October 2014

 


 


 


 


 


Council

19

10 December 2014

L.1

Attachment a

Financial Activity Statements - Period Ending 31 October 2014

 


Council

21

10 December 2014

L.1

Attachment a

Financial Activity Statements - Period Ending 31 October 2014

 


 


 


 


 


 


 


 


Council                                                                                      29                                                          10 December 2014

L.2             Finance Committee - 4/12/2014 - LIST OF PAYMENTS MADE – OCTOBER 2014

SUBJECT INDEX:

Financial Operations

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

Manager, Finance and Information Technology - Darren Whitby

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   List of Payments Made - October 2014  

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

This report provides details of payments made from the City’s bank accounts for the month of October 2014, for noting by the Council and recording in the Council Minutes.

 

 

BACKGROUND

 

The Local Government (Financial Management) Regulations require that when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, that a list of payments made is prepared each month for presentation to, and noting by, the Council.

 

STATUTORY ENVIRONMENT

 

Section 6.10 of the Local Government Act and more specifically, Regulation 13 of the Local Government (Financial Management) Regulations; refer to the requirement for a listing of payments made each month to be presented to the Council. 

 

RELEVANT PLANS AND POLICIES

 

NA.

 

FINANCIAL IMPLICATIONS

 

NA.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

NA. 

 

CONSULTATION

 

NA.

 

 

OFFICER COMMENT

 

NA.

 

CONCLUSION

 

NA.

 

OPTIONS

 

NA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council notes the payment of voucher numbers M109840 - M110115, EF036687 - EF037146, T007105 - T007109, and DD002288 - DD002322, together totalling $6,206,164.60.

 

 


Council

31

10 December 2014

L.2

Attachment a

List of Payments Made - October 2014

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      57                                                          10 December 2014

L.3             Finance Committee - 4/12/2014 - BUDGET ADJUSTMENT REPORT - SCHOOL FOOTPATHS SWDC UNSPENT GRANT FUNDS

SUBJECT INDEX:

 

STRATEGIC OBJECTIVE:

Linked networks of cycleways and pedestrian paths providing alternative transport options.

BUSINESS UNIT:

Engineering and Facilities Services; Operations Se

ACTIVITY UNIT:

 

REPORTING OFFICER:

Engineering Management Accountant - Stephen Wesley

Director, Engineering and Works Services - Oliver Darby

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Jensen Way Footpath and Parking

Attachment b    Jensen Way Car Parking Plan

Attachment c    Kaloorup Road Drop Off Area

Attachment d   Keenan Street Path - Dunsborough  

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

This report seeks Council approval to amend the original budget to bring to account four new projects to be completed this financial year, these projects to be funded from unspent South West Development grant monies currently held by the City.

 

 

BACKGROUND

 

The City received $1.395m in grant funding from the South West Development Commission in financial year 2012/13. These funds were provided to undertake pedestrian improvements within the City as detailed in the table below.  

 

Project Description

Original Budget

Actual Cost $

Under / (Over) Budget variance

Footpath on Bussell Highway – Mac Intyre to Ray Ave

75,000

58,719

16,281

Footpath on Bussell Highway - Queen Elizabeth Ave to West St

60,000

58,800

1,200

Footpath on Bussell Highway - Breeden Street to Earnshaw Rd

115,000

63,372

51,628

Footpath on Queen Elizabeth Ave - Grace Ct to Recreation Lane

90,000

65,975

24,025

Footpath on Bussell Highway - Barnard Road to Hadfield Ave

90,000

41,036

48,964

Vasse Footpaths and Bridge Network

821,000

842,342

(21,342)

Ray Village Pedestrian Crossing

47,565

30,595

16,970

Peel Terrace Pedestrian Crossing

31,570

31,570

 -  

Peel Terrace Bus Embayment

9,000

9,000

 -  

Fairway Drive Pedestrian Crossing

55,865

55,865

-  

Totals

1,395,000

 1,257,273

  137,726

 

All of the projects associated with the original grant funding agreement have been completed with the exception of a small portion of the Vasse Footpaths Network.

The City is awaiting road widening works and the construction of a roundabout on the Bussell Highway to be completed by Main Roads in order that the last 130 meter section of path can be delivered. It will link into the existing paths network. A preliminary costing for these works is estimated at approximately $10,000.    

 

Upon completion of the missing link there will be in the order of $127,726 in unspent grant funds remaining. (This is the amount shown in the “variance column” of the table above reduced by the $10,000 yet to be outlaid)

 

Permission has been sort and subsequently granted by the South West Development Commission to assign the remaining grant monies to undertake further pedestrian enhancements close to three separate school zones. The proposed projects are detailed below;   

 

Project 1 & 2 - West Busselton Primary footpath and Car Parking              Estimated Cost $100,500

 

The West Busselton Primary School has adequate pedestrian accessed-ways with the exception of the eastern approach off Craig Street along Jensen Way. Currently, pedestrians are required to walk approximately 140m on the roadway to access the school via the sports oval. Completing this link will provide safer access to the school and sports oval. This is estimated to cost in the order of $30,000.

 

In addition to the new path it is proposed that approximately 39 car parking bays be constructed along the southern side of oval adjacent to Jensen Way. Cars are consistently parking on the verge, thus these works will formalise parking in this area. These works are estimated to cost in the order of $70,500.

 

See ATTACHMENT A & B showing the location of the proposed path and car parking bays.

 

Project 2 - Vasse Primary School Drop-off                                                            Estimated Cost $10,000

 

The Vasse Primary School has been experienced rapid growth with several large housing and commercial sub-division developments in the area. This has increased traffic volumes on the surrounding roads and significant congestion around the school at peak times. The intent of this project is to formalise a drop-off and pick-up area on Kaloorup Road to help reduce the existing congestion. It will also reduce the need for additional parking and improve traffic flow within the area in general.

Supporting the construction of this infrastructure is the success of a recently trialed drop-off and pick-up area on Kaloorup Road. ATTACHMENT C shows the site of the proposed drop-off point.

 

Dunsborough Primary School new path                                                                 Estimated Cost $17,226

 

Access to the Dunsborough Primary School is predominately by Keenan Street, a small narrow one way street shared by buses, cars, cyclists and pedestrians.

 

The high volume of traffic causes significant congestion and conflict at peak times. Child safety has been identified as a concern by the schools Parents and Citizens' (P&C) Association and to some extent the Department of Education.

It is being proposed that a short section of additional path be built adjacent to the existing path on Keenan street to alleviate conflict and congestion be separating pedestrians and cyclist.

It should be pointed out that an unofficial dirt path in the proposed location is already being used as can be seen on ATTACHMENT D.

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council. 

 

RELEVANT PLANS AND POLICIES

 

Nil

 

FINANCIAL IMPLICATIONS

 

The existing budget has $137,726 recorded against Cost Code F0042 titled, Vasse Footpath Network, as a carry-over from the previous year.

 

This budget amendment seeks Councils approval to reassign $127,726 of these monies against the following four new projects.

 

1.    West Busselton Primary footpath                                                            $30,000

2.    West Busselton Primary Car Parking                                                       $70,500

3.    Vasse Primary School Drop-off                                                                  $10,000

4.    Dunsborough Primary School new path                                                 $17,226

TOTAL                                                                                                                   $127,726

 

The proposed budget adjustment will have no financial implications on the City’s net budgeted financial position.

 

STRATEGIC COMMUNITY OBJECTIVES

 

4.1          Transport options that provide greater links within our district and increase capacity for community participation.

4.3          A linked network of cycle ways and pedestrian paths providing alternative transport options.

 

RISK ASSESSMENT

 

There is a financial risk, as there is with most undertakings that the estimated preliminary project costs could potentially exceed the budget allocated in lieu of detailed design and costings. If additional unforeseeable costs eventuate the City will need to fund the difference. 

 

CONSULTATION

 

There has been consultation with the South West Development Commission, West Busselton Primary, Vasse Primary School and Dunsborough Primary School.

 

OFFICER COMMENT

 

Council approval is sought to amend the original budget to bring to account the four new projects to be completed this financial year, these projects to be funded from unspent South West Development grant monies currently held by the City.

City officers have been working closely with the SWDC and the schools as detailed in the report to develop these projects.

 

CONCLUSION

 

This report seeks Councils approval to;

1.    Approve the four new projects so works can commence.

2.    Adjust the existing budget allocation accordingly.

 

OPTIONS

 

The Council may determine not to accept the new projects or amend the Officer Recommendation in any way they deem suitable. Alternatively, Council could return the unspent grant monies to the Commission.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the Officer Recommendation be endorsed, the associated budget amendments will be processed within a month of being approved.

 

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council endorse the budget amendments as follows:

 

·    Reduce the expenditure budget on the existing project F0042 by $127,726

account string 541.F0042.3280.0000

 

·    Add expenditure to new project titled, Jensen Way Footpath (West Busselton Primary)  $30,000

account string 541.NEW.3280.0000

 

·    Add expenditure to new project titled, Jensen Way Oval Parking (West Busselton Primary)$70,500

account string 541.NEW.3280.0000

 

·    Add expenditure to new project titled, Kaloorup Road Vehicle Drop-off area (Vasse Primary School)  $10,000

account string 541.NEW.3280.0000

 

·    Add expenditure to new project titled, Keenan Street Path (Dunsborough Primary School) $17,226

account string 541.NEW.3280.0000

 

 

 


Council

61

10 December 2014

L.3

Attachment a

Jensen Way Footpath and Parking

 


Council

61

10 December 2014

L.3

Attachment b

Jensen Way Car Parking Plan

 


Council

63

10 December 2014

L.3

Attachment c

Kaloorup Road Drop Off Area

 


Council

63

10 December 2014

L.3

Attachment d

Keenan Street Path - Dunsborough

 


Council                                                                                      65                                                          10 December 2014

L.4             Finance Committee - 4/12/2014 - GEOGRAPHE LEISURE CENTRE - BUDGET AMENDMENT REQUEST AIR HANDLING

SUBJECT INDEX:

GLC Extension

STRATEGIC OBJECTIVE:

A City where the community has access to quality cultural, recreation, leisure facilities and services.

BUSINESS UNIT:

Community Services

ACTIVITY UNIT:

Community Services

REPORTING OFFICER:

Manager, Community Services - Maxine Palmer

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

The purpose of this report is to seek approval to amend the 2014-2015 Geographe Leisure Centre (GLC) to transfer $18,169 from the GLC building maintenance services budget (336-10591-3110-0000) to the GLC extensions capital budget (126-B9554-3280-000) for the provision of air handling in the GLC change rooms and Universal Access Toilets (UATs).

 

 

BACKGROUND

 

The existing air handling in the GLC change rooms consists of outside air blowing into the area with no evacuation system. This was a ‘quick fix’ installed about two years ago to address the problem of condensation and moisture build up that was causing rot, mould and staining to all the change room walls, floors and ceilings. The fix hasn’t completely resolved the condensation problem and has caused repeated customer complaints especially during winter and first thing in the mornings from elderly users and families with children when cold air blows into the change rooms and showers.

 

CDJ Engineering and Consultancy Services Ltd, installed the Geothermal system at the GLC, which included air handling in the pool hall. CDJ was also appointed through the GLC expansion project to provide air handling into the new gym, crèche, allied health suites, cycle room and existing group fitness room.  Whilst not necessarily required at this point in time, the expansion project scope did not include the change rooms and UATs, however it was deemed advantageous to undertake the works in conjunction with the expansion project so that cost efficiencies could be taken advantage of. 

 

The contingency budget for the expansion project has insufficient funds to cater for these works, however, resolution to the lack of air flow in the change room has been included in the GLC Business Plan endorsed by Council in March 2014, and still remains a priority for the GLC’s operating budget. CDJ was requested to provide a quote to install air handling in the change rooms and UATs.  CDJ quoted $18,169 which factored in savings that would be enabled by bulk procurement of equipment if an order was placed at the same time as the equipment needed for the health suites, offices and stadium air handling systems.

 

To enable CDJ to purchase the equipment in bulk and achieve the desired cost savings, a purchase order was raised from the GLC’s building maintenance operating budget. $9,700 has since been invoiced for the equipment. A subsequent transfer of funds is therefore recommended to transfer $18,169 from the GLC building maintenance services budget (336-10591-3110-0000) to the GLC extensions capital budget (126-B9554-3280-000) to ensure the project remains within budget.

 

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorized in advance, by an absolute majority decision of the Council.

 

RELEVANT PLANS AND POLICIES

 

This proposal aligns to the City’s Strategic Community Plan of 2013:

 

Key Goal Area 2:               Well planned, Vibrant and Active Places

Objective:                           2.1 A City where the community has access to quality cultural, recreation,                                             leisure facilities and services.

                                                2.3 Infrastructure assets are well maintained and responsibly managed to                                              provide for future generations.

 

FINANCIAL IMPLICATIONS

 

The following budget amendment is recommended, noting this results in a net neutral outcome to Council.

 

Description

 Account String

2014/15 Adopted Budget  $

 2014/15 Amended Budget (PROPOSED)  $

Variance $

GLC building maintenance services

336-10591-3110-0000

$35,280

$17,111

-$18,169

GLC extensions capital budget

126-B9554-3280-000

$889,331

$907,500

$18,169

Net Variance

 

$0

$0

$0

 

STRATEGIC COMMUNITY OBJECTIVES

 

A City where the community has access to quality cultural, recreation, leisure facilities and services.

 

RISK ASSESSMENT

 

An assessment of the potential implications of implementing the officer recommendations has been undertaken using the City’s risk assessment framework. The assessment identifies ‘downside’ risks only, rather than ‘upside’ risks as well. The officer recommendation is considered to be “low” risk.

 

CONSULTATION

 

Nil

 

OFFICER COMMENT

 

The ‘quick fix’ to enable some air flow into the GLC change rooms has reduced the condensation build up, although not completely. Moisture from the hot showers is still creating condensation, causing mould to grow which will stain walls and ceilings and eventually will result in rotted ceiling tiles. The cold air blowing into the change rooms has also resulted in increasing customer complaints.

 

Since the Geothermal air handling, installed by CDJ, has been operating in the pool hall the condensation issues have been resolved. CDJ are able to install an extension of the Geothermal system in the change rooms and UATs which will also deliver ambient air temperatures year round in these areas and address the risk of new fittings and freshly painted walls and ceilings being damaged by further mould and staining due to condensation build up.

 

The 2014/15 adopted GLC capital budget incorporates $30,420 for the purchase of specific equipment needed to fit out the new gymnasium.  Utilising these funds for the air handling system will limit the scope of the completed gymnasium it is therefore not recommended that this budget be utilised to fund the works. The GLC’s 2014/15 adopted building maintenance budget (336-10591-3110-0000) is $59,095. This budget comprises of expenses for both planned and unplanned maintenance. The drawing of funds from this budget will enable CDJ to purchase the equipment in bulk and achieve the desired cost savings.

 

CONCLUSION

 

Officer’s recommend that the 2014/15 adopted budget be amended through the transfer of $18,169 from the GLC building maintenance services budget (336-10591-3110-0000) to the GLC extensions capital budget (126-B9554-3280-000) to allow for the upgrading of the air handling system in the change rooms and UATs, capitalizing on cost efficiencies resulting from the GLC expansion project. 

 

OPTIONS

 

Council may determine not to support the Officer’s recommendation and resolve not to provide air handling in the GLC change rooms and UATs. However, $9,700 has already been invoiced to purchase the equipment at a reduced cost and therefore retention or disposal of this equipment would therefore need to be negotiated.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the officer recommendation be endorsed, budget amendments will occur in December 2014.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

That the Council:

 

1.    Approves an amendment to the 2014/15 budget on the following base:

 

Description

 Account String

2014/15 Adopted Budget  $

 2014/15 Amended Budget (PROPOSED)  $

Variance $

GLC building maintenance services

336-10591-3110-0000

$35,280

$17,111

-$18,169

GLC extensions capital budget

126-B9554-3280-000

$889,331

$907,500

$18,169

Net Variance

 

$0

$0

$0

 

 

 

 

 


Council                                                                                      69                                                          10 December 2014

L.5             Finance Committee - 4/12/2014 - APPLICATION FOR EXEMPTION FROM RATING - BUSSELTON GOSPEL CHAPEL INC.

SUBJECT INDEX:

Exemptions and Appeals

STRATEGIC OBJECTIVE:

Governance systems that deliver responsible, ethical and accountable decision-making.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Rates

REPORTING OFFICER:

Rates Coordinator - David Whitfield

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Busselton Gospel Chapel Inc - Exemption Application Letter  

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

At its meeting of 28th July 2010, and in considering the Locke Estate lease project, the Council resolved (C1007/271), inter alia, that “as of the commencement of the new lease, each site is to be subject to the payment of shire rates unless an application from the lease is received by the Shire and the Council determines that the leased site is to be exempted from rates.”

 

During May 2013, the above determination was reaffirmed with the lessees, at which time they were also requested to submit an application for the rating exemption, should they believe they met the associated criteria.

 

This report details an application received by the Busselton Gospel Chapel Inc. (Busselton Christian Brethren Camp) as received on the 1st October 2014 and, on the basis of the application details, recommends that the request for exemption be granted.

 

 

BACKGROUND

 

The Busselton Gospel Chapel Inc. is both a religious and a not for profit organisation and has occupied a leased site within the Locke Estate for many years, recently signing for a further 21 year lease for site 9 of the Estate.

 

The site is maintained by the Busselton Gospel Chapel Inc. and is used for Church services, midweek meetings and youth group activities held on a weekly basis.

 

The site also provides accommodation/respite care for many who are disadvantaged and cannot afford accommodation at more commercial facilities.

 

The site is also made available to other affiliated church groups as well as schools and community groups to have weekend or longer camps as this helps many who cannot or would not attend such an experience due to financial constraints.

 

The site is also made available to “Red Frog” volunteers during leaver’s week to defray their costs during their commitment and time working with young people during leaver’s week.

Documentation provided in support of the application includes:

 

·    General correspondence giving an overview of the operations of Busselton Gospel Chapel Inc.

·    Business Plan

·    Busselton Gospel Chapel Inc. – Constitution.

·    Profit and Loss statement 2013-2014.

 

STATUTORY ENVIRONMENT

 

Section 6.26 of the Local Government Act provides broad definitions for rateable and non-rateable land. Moreover, Section 6.26 (2) (g) states that land is not rateable if it is “used exclusively for charitable purposes”.

 

RELEVANT PLANS AND POLICIES

 

Council’s Rating Policy makes no specific mention to the provision of rating exemptions.

 

FINANCIAL IMPLICATIONS

 

The Locke Estate lots have not historically been subject to the imposition of annual rates. However, the Council resolved (C1007/271) in July 2010 that upon commencement of the new leases each leased site was to be subject to the payment of rates, unless granted an exemption by the Council upon application. The annual rates levied for site 9 (Locke Estate) for the 2014/15 financial year were $1,536.00. The granting of the rates exemption as sought would result in this revenue being foregone in 2014/15 and future years.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more

specifically Community Objective 6.3 ‐ ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

That Council by not approving the application for rate exemption may be required to defend its decision if the matter were to be appealed by the applicant to the State Administrative Tribunal and that legal costs may be incurred as a result.

 

Risk

Controls

Consequence

Likelihood

Risk Level

Legal costs may be incurred in defending Councils decision if the application is declined.

Applicant may lodge further application with Council or may appeal the decision via the State Administrative Tribunal

Insignificant

Likely

Medium

 

CONSULTATION

 

NA.

 

 

OFFICER COMMENT

 

In accordance with Section 6.26 (2) (g) of the Local Government Act, which states that land is not rateable if it is land used exclusively for charitable purposes, the application need only be considered in two parts – these being firstly; is the use itself “charitable”?, and secondly if the use is considered to indeed be charitable then; is the property being used exclusively for such use?

 

In considering the first part i.e. is the operations of Busselton Gospel Chapel Inc., legal opinions have been consistent in defining a charitable purpose; as follows:

 

“The expression “charitable purposes” may be satisfied if the land is exclusively for one of the following purposes:

 

1.    The relief of poverty;

2.    The advancement of education;

3.    The advancement of religion; and

4.    Other purposes beneficial to the community.”

 

At this point attention is drawn to the findings of a 2002 Land Valuation Tribunal hearing (Southern Cross Aged Care Inc. v The City of Fremantle) in which the following was stated:

 

“11. The statutory provision (Section 6.26 (2) (g) - Local Government Act 1995) does not make it necessary to decide by whom the use of the land is made. The question is for what purpose is the land used.

 

12. Accordingly the correct approach when determining exemption applications is to focus upon the actual use of the land. In other words whether a use is charitable will depend on essentially upon the nature of the activities that are being conducted upon the land in question.”

 

Reference is also drawn to the lease agreement between the applicant and the City which states:

 

“Use:

 

(1)         The primary use of the Lease is for the Lessee to use the premises for temporary accommodation for:

 

(a)  Groups participating in organised education, cultural, religious or recreational activities;

(b)  Financially disadvantaged persons who are otherwise not able to afford a holiday; and

(c)   Individuals or families requiring respite.”

 

The above uses could be considered charitable uses in light of the above mentioned definition of charitable purposes, albeit primary use does not necessarily extend to exclusive use.

 

In this instance it is recognised that the respective site is being leased by the Busselton Gospel Chapel Inc. from the City of Busselton. The site is then being hired to third parties who, on the basis of the information supplied in the application, may then be providing services to their members/clientele that could meet the any of the 4 charitable purposes listed above.

 

It would therefore appear that, if taken on face value, the current usage of the site would be considered charitable.

 

The second part in the consideration of the application is the question of the property’s “exclusive use” as a charitable purpose.

Under the terms of the lease with Council the usage of the property is primarily restricted to purposes that could, in a legal context, be considered charitable.

 

The lease agreements do allow for short stay accommodation to the general public to be made available upon written approval of the Council however such approval has not been requested by the Busselton Gospel Chapel Inc. Provided such use was minimal it could be considered ancillary to the primary use and not necessarily jeopardise the rate exemption status.

In terms of the current usage of the property there are no known compliance issues.

 

Should this application for exemption from rating be successful, the applicant will subsequently be advised that if the usage of the property should alter such that the requirements for eligibility for rate exemption are no longer met, then the rate exemption will be cancelled and rates and charges will become applicable from the date of such change.

 

CONCLUSION

 

In light of the details provided by Busselton Gospel Chapel Inc., referencing the application to recent applications for rate exemption both within the City of Busselton and other municipalities, and by taking into account the property use requirements of the signed lease agreement  it is considered that the applicants are providing a charitable purpose to the community and that the provision of such services from site 9 (Locke Estate) being 172 Caves Rd, Siesta Park is considered to be an exclusive use.

 

OPTIONS

 

The Council may decline the application for rate exemption on the basis that it considers Busselton Gospel Chapel Inc. is not providing a charitable purpose to the community or that such charitable use relating to the property is not considered an exclusive use.

 

Should the application be declined for either of the above reasons Busselton Gospel Chapel Inc. has the option to appeal the matter via the State Administrative Tribunal. This action as a result will require the Council to defend its position and may incur further legal costs.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The application for exemption from rating was received following the issue of the annual rates and charges for 2014/15. It is proposed that the exemption from rating, if approved, be granted from the 1st July 2014.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council:

 

1.    In accordance with Section 6.26(2) (g) of the Local Government Act 1995 declare Site 9 (Locke Estate) as leased by Busselton Gospel Chapel Inc. be declared exempt from rating on the basis that the property is being used exclusively for a charitable purpose, with the effective date being the commencement of the 2014/2015 financial year, namely, the 1st July 2014.

 

 

 


Council

73

10 December 2014

L.5

Attachment a

Busselton Gospel Chapel Inc - Exemption Application Letter

 


 


Council                                                                                      75                                                          10 December 2014

L.6             Finance Committee - 4/12/2014 - EXCAVATION OF NEW CELL AT DUNSBOROUGH WASTE FACILITY

SUBJECT INDEX:

Waste

STRATEGIC OBJECTIVE:

Environment and climate change risks and impacts are understood and managed.

BUSINESS UNIT:

Operations Services

ACTIVITY UNIT:

Waste Management

REPORTING OFFICER:

Waste Coordinator - Vitor Martins

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Authorisation is requested to reallocate up to $650,000 from the $ 900,000 budget account 524-G0032-7703-0000 for Rubbish Sites Development (land purchase for new waste site), to fund the expansion of the existing landfill at the Dunsborough Waste Facility (New Cell Development), account string 524-C3479-3280-0000, before the onset of winter and the start of the 2015-16 financial year.

 

The first phase of this expansion includes the planning and excavation of New Cell 1 and the engineering design and works approval of the new gatehouse and weighbridge site, internal access roads and waste recycling and transfer infrastructure, which will have to be relocated under the expansion scenario considered. This will allow the City to secure waste disposal capacity as and when needed.

 

 

BACKGROUND

 

The Dunsborough Waste Facility is the sole landfill in the City of Busselton. Works Approval documentation has been submitted to the Department of Environment Regulation (DER) for a new lined cell at the site. A lined cell is now a pre-requisite of all new major cells at WA landfill facilities under DER authority in order to provide better protection for the groundwater and natural environment from leachate contamination.

 

Recent volumetric surveys have indicated that the current unlined cell at the Dunsborough Waste Facility will reach capacity by May 2017 at current disposal rates. However, full capacity of the current cell will not be available until the new lined cell (which is adjacent) has been filled to a pre-determined level. This is because steep slopes will result in the edges of the current unlined cell being inaccessible for landfilling until the new cell has been brought up to that height. Therefore, the need to shift waste disposal to the new cell is likely to run out before May 2017, if only temporarily.

 

New Cell 1 is located in the south-western corner of the Dunsborough Waste Facility and has approximate dimensions of 110m x 115m x 10m deep. This is the first in a series of five lined cells planned for the site, which will provide landfill space for an anticipated period of 15-20 years, depending on landfilling volumes and the possibility of the site also being used for landfilling needs for other local governments in the South-West of WA.

 

Lined cells require significant preparatory works before being capable of accepting waste. Excavation is the first step in the process, and is followed by the installation of a double-layer of protection which includes drainage pipes and pumps leading into a leachate pond, for the storage of liquid which has infiltrated through to the bottom of the cell.

 

In order to progress the works in an orderly manner, and to allow for contingencies, a minimum of two dry seasons (and ideally three seasons) is required. Excavation of the cell before winter 2015 should be followed by the installation of the lining in the summer of 2015-16. This will allow for the cell to be ready in time with minimum risk of prematurely running out of airspace for waste disposal.

 

The City does not want to risk being in a potential position where landfill space could run out before the new cell is ready to accept waste.

 

Just before the current financial year Ridge Rd location, off Sues Rd at the southern edge of the City boundary, was being pursued as the next waste landfill site. The 2014-15 Budget, therefore, includes $900,000 for land purchase, but no allowance to start building a new site.

 

The Ridge Rd site was found to have groundwater at a shallow depth during the site groundwater investigations in March 2014, and also because the Department of Water decided in 2014 not to exclude the Ridge Rd site from its Priority 1 water catchment area for Margaret River, contrary to its earlier indication that it was considering doing so.

 

Hence, since the 2014-15 Budget was drawn up, the focus on future landfilling for the City’s needs has switched from the Ridge Rd location, off Sues Rd at the southern edge of the City boundary, back to Dunsborough Waste Facility.  In effect, this has been endorsed by Council by approving the CapeROC Strategic Waste Management Plan in 25 June 2014.

 

New cells at Dunsborough are, as yet, the only confirmed locations for future landfilling for the City’s needs.

 

The estimated cost of the works, including the engineering design and works approval of general infrastructure ($ 60,000) and the excavation of Cell 1 ($590,000) amounts to a total of $650,000 (ex. GST).

 

Following Council approval of the funds being reallocated, a public tender will be issued for the excavation works to ensure best value for money.

 

Excavation is expected to take 1-2 months and will be done according to an excavation plan which the City has awarded to waste engineering consultants Bowman & Associates.

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget.  In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council. 

 

RELEVANT PLANS AND POLICIES

 

Council Policy pertaining to Waste Management Facility and Plant Reserve (007) requires funds from waste disposal charge to be allocated to purchasing Waste Management Facility and Plant.

 

The Capes Regional Organisation of Councils (CapeROC) Strategic Waste Management Plan includes the expansion of the landfill at Dunsborough Waste Facility as a strategic project for the City and for the Capes region. It has been endorsed by Council on 25 June 2014 and, more recently, by the Department of Environment Regulation.

 

FINANCIAL IMPLICATIONS

 

This item requires no spending in addition to the approved budget, but only a re-allocation of up to $650,000 ($590,000 for Cell excavation and $ 60,000 for infrastructure design) to be drawn from account 524-G0032-7703-0000 (Rubbish Sites Development). This account was originally considered for land purchase for the new waste site, which will not happen during the current financial year.

 

This re-allocation is expected to have a positive impact on the closing reserve (at the end of the current financial year), as it will reduce capital expenditure from the $900,000 to $650,000 for the same period, with the excess reverting back to the Waste Management Facility and Plant Reserve.

 

It is not expected to impact on the overall financial planning for the City’s waste needs over a longer timeframe, as the pursuit of a new site is still in the horizon

 

The funding will still be coming from the Waste Management Facility and Plant Reserve. The Reserve had a Budget closing balance of $5.8 million at the end of the previous financial year and is expected to close the year at $4.6 million.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The excavation of the new cell at Dunsborough is relevant to the Strategic Community Plan 2013:

 

Key Goal Area 2:               Well Planned, Vibrant and Active Places

 

Community Objective 2.3 Infrastructure assets are well maintained and responsibly managed to provide for future generations.

 

Key Goal Area 5:               Cared for and Enhanced Environment

 

Community Objective 5.3 Environment and climate change risks and impacts are understood and managed.

 

RISK ASSESSMENT

 

Given that no other landfill location exists in the City of Busselton and the fact that waste will continue to be generated, there is very little risk that the excavation of the cell will not be warranted for pursuing waste landfill capacity for the near future.

 

The main risk is the possibility of further cost blowouts in the project as a result of unforeseeable circumstances, which could arise through the contractors being unable to deliver the project on time and on budget, or through engineering difficulties associated with the project. These will be minimised by the Consultant’s excavation plan currently under development.

 

CONSULTATION

 

Nil.

 

OFFICER COMMENT

 

The City started imposing a Waste Disposal Charge on all properties in 2012 in order to raise funds for the construction of major waste infrastructure, via the Waste Management Facility and Plant Reserve.  Relevant infrastructure includes the new lined cells at Dunsborough. This work is essential in order for the City to continue to operate its waste functions, as required by current environmental standards, and is part of the Strategic Waste Management Plan endorsed by Council in June 2014.

 

The capital budget for the current financial year did not include an allowance for these funds. Rather, it was focused on pursuing a new site at Ridge Rd. Since that option turned out to be unviable due to engineering constraints of that prospective site; a re-allocation of the budget for pursuing landfill expansion at Dunsborough Waste Facility is now recommended.

 

Excavation of Cell 1 and engineering design and works approval of associated infrastructure (weighbridge, gatehouse, internal road access, domestic waste transfer area and recycling area) are included in the first phase of that expansion and shall be undertaken within the current financial year, so that the City secures waste landfill capacity as and when needed.

 

Alternative waste sites for the future, regional or otherwise, are still being sought. Purchase of land and/or offset arrangements with State agencies will still be required. Therefore, this re-allocation is not expected to impact on the overall financial planning for the City’s waste needs over a longer timeframe.

 

CONCLUSION

 

The excavation of the new cell and the planning for relocation of the site infrastructure (weighbridge, gatehouse, internal road access, domestic waste transfer area, recycling area) are warranted a year ahead of schedule, in order for the City to progress the works in a timely manner and to ensure the City has the required landfill space available as and when needed.

 

OPTIONS

 

Council may reject the request for funds to be reallocated for this work, in which case the City will have to wait a further summer to do the excavation, and will run a higher risk of running out of landfilling airspace before the new cell is ready for use. The land purchase account would remain unspent, as there is no current viable option for an alternative waste site.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Contractors have stated they are able to start work on this project within a month of being awarded work. A public tender will be required to be issued, which will result in the work being started only after that process has been completed; an estimated one month.

 

The expected time line is as follows:

 

Activity

Date/Finished by

Engineering design and works approval of infrastructure

March, 2015

Excavation of Cell 1

April, 2015

Infrastructure works approval obtained

September, 2015

Cell lining and leachate drainage and treatment infrastructure

May, 2016

New cell coming in to operation

June, 2016

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

That the Council:

 

1.            Approve up to $650,000 to be drawn from Rubbish Sites Development account string 524-                G0032-7703-0000 and added to existing New Cell Development cost code (to account string                 524-C3479-3280-0000).

 

2.            Approve $250,000 to be drawn from Rubbish Sites Development account string 524-G0032-                7703-0000 and to revert back to the Waste Management Facility and Plant Reserve.

 

 


Council                                                                                      81                                                          10 December 2014

L.7             Finance Committee - 4/12/2014 - FOOTPATHS AND CYCLEWAYS FUNDING POLICY

SUBJECT INDEX:

Asset Management

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Engineering and Facilities Services

ACTIVITY UNIT:

Asset Management

REPORTING OFFICER:

Asset Coordinator - Dan Hall

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Footpaths and Cycleways Funding Scenarios  

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

The purpose of this report is to present for the Council’s adoption, a policy providing a framework for the long term funding of footpaths and cycleways.

 

 

BACKGROUND

 

The Asset Management Plan for Footpaths and Cycleways (FCAMP) was presented for adoption to the Council on 25 June 2014. One of the outcomes of the FCAMP was the recognition that the footpath and cycle ways network needs to be managed with a balance of renewal and new expenditure as well as ongoing review of the existing networks.

 

Whilst the required fifty year renewal expenditure can be catered for based on existing levels of expenditure, the need to construct new paths out of the same pool of money also, creates a funding gap over the course of the plan that needs to be met.

 

In order to find the best balance between renewal and new expenditure, it was determined that some further modelling should be undertaken following the adoption of the FCAMP.

 

To this end, on 25 June 2014, the Council adopted the following recommendation;

 

C1406/152 That the Council:

 

1. adopts the individual asset management plans for Drainage and Footpaths and Cycle Ways.

2. endorses the development of a Policy (to be presented to Council prior to 31 December 2014) that provides a framework for the ongoing provision of Footpaths and Cycle Ways. The policy is to include:

 

·    Details of the overall funds required to be directed towards footpaths and cycle ways over a period of 50 years;

·    The intended split between new and renewal expenditure and timeframes around the construction of the current prioritised list of new footpaths and cycle ways;

·    Identification of any future funding gaps (caused by spikes in expenditure); and

·    Details of how any future funding gaps will be met.

 

STATUTORY ENVIRONMENT

 

Section 2.7 of the Local Government Act details the role of the Council, which includes, amongst others, the determination of a local government’s policies.

 

RELEVANT PLANS AND POLICIES

 

The data from Asset Management Plans is incorporated into the Long Term financial Plan and in this way informs the Corporate Business Plan and Annual Budget.

 

FINANCIAL IMPLICATIONS

 

Although there is no immediate “backlog” of renewal works identified for footpaths, there are some large spikes in expenditure from year thirty onwards. These spikes are caused by large amounts of footpath being constructed at around the same time, being of similar current condition and as a result, being theoretically due for replacement at around the same time (i.e. Provence, Vasse Newtown).

 

These spikes are also shown in Attachment A.

 

The average renewal funding required to cover the next fifty years of footpath renewal is $1,34M. The overall fifty year average based on the extrapolation of the current LTFP (2015/16 – 2025/26) figures is approx. $1.36M, so the continuation of the current allocation of funds would sufficiently cover the cost of the required renewals. However, this does not cover the construction of any new footpaths or cycle ways.

 

With approximately $17M of currently identified new paths, $9M of renewal and $16M of currently available funds over twenty years, a balance needs to be found to fund the most critical works for new and renewal, within the existing parameters.

 

In the initial years of the FCAMP, (years one–twenty ) the required renewal expenditure is estimated to be $454,000 p.a. this leaves scope within the existing allocation to fund a mix of new and renewal expenditure. However any of these existing funds spent on new construction instead of renewal will ultimately need to be recouped in order to fund the required renewals over time.

 

Modelling has been undertaken to research how to fund the most critical works for both new and renewal and minimise the long term implications for the renewal funding gap of splitting the expenditure between new and renewal.

 

Through the development of the LTFP Plan (2015/16 to 2024/25), the Council has allocated an overall total of $6,924,000 for footpaths and cycleways capital expenditure. Four scenarios were considered as a means of funding both new and renewal expenditure for footpaths and cycle ways over the next twenty years (2015/16 – 2036/37) based on extrapolation of current LTFP figures.

 

These scenarios are based on funding within existing levels of expenditure as well as one scenario considering the implications of a specific rate increase in the first ten years. These scenarios are outlined in detail below.

 

Scenario One involves a seventy / thirty percentage split of the total pool of paths and cycle ways funds for the first twenty years of the plan (2015/16 – 2036/37), after which, the split will revert to a 100% allocation towards renewal of footpaths.

 

This scenario creates a twenty year average of $243,428 for renewal and $567,999 for new construction.

This scenario will create a funding  backlog of $12.6M by  2050/51. An indicative rate increase of around 8.5% at this point in time would ensure that this backlog is reduced over a period of time and the plan returned to a balanced position by year fifty.

 

Scenario one will allow for $11.36M worth of new paths over the first twenty years of the plan.

 

Scenario Two involves a continuation of the existing one percent p.a. road renewal increases due to finish at the conclusion of year four (2018/19). The one percent would be carried though until year ten (2024/25) and followed by one per cent p.a. in years nineteen, thirty three, thirty four and thirty nine.

 

This would allow the City to take advantage of an already established avenue for raising additional income for infrastructure assets. It does however, start raising additional funds in year five (2019/20) for a renewal spike that is not until year seventeen (2030/31); and major spikes that are not predicted until year thirty three, thirty nine and forty five. This may be counter-productive in terms of more immediate priorities that these funds could be used for.

 

One possible alternative within this scenario might be to use the funds generated over years seven ten to fast-track the construction of new paths, thus reducing the overall timeframe for this activity.

These proposed rate increases would generate an additional approx. $3.8M from years five – twenty.

 

Scenario Three involves a sixty / forty percentage split of the total pool of paths and cycleways money for the first twenty years of the plan (2015/16 – 2036/37), after which, the split will revert to a 100% allocation towards renewal of footpaths.

 

This scenario creates a twenty year average of $324,571 for renewal and $486,856 for new construction.

 

This scenario will create a funding backlog of $11M by  2050/51. An indicative rate increase of around seven point five per cent at this point in time would ensure that this backlog is reduced over a period of time and the plan returned to a balanced position by year fifty.

 

Scenario Three will allow for $9.7M worth of new paths over the first twenty years of the plan.

 

Scenario Four involves a Fifty / fifty percentage split of the total pool of paths and cycleways money for the first twenty years of the plan (2015/16 – 2036/37), after which, the split will revert to a 100% allocation towards renewal of footpaths.

 

This scenario creates a twenty year average of $405,714 for renewal and $405,714 for new construction.

 

This scenario will create a funding backlog of $9.3M by  2050/51. A rate increase of around six per cent at this point in time would ensure that this backlog is reduced over a period of time and the plan returned to a balanced position by year fifty.

 

Scenario Four will allow for $8.11M worth of new paths over the first twenty years of the plan.


 

Table 1: provides an overview of each scenario for the in line with the timeframes of the current LTFP 2015/16 – 2024/25.

 

Year

1

2

3

4

5

6

7

8

9

10

 

 

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

2021/22

2022/23

2023/24

2024/25

Total

$

Scenario 1 -

70/30 split years 1-20. Nil new and 100% renewal year 20 onwards. 8.5% in Year 34

 

Renewal

181,200

186,600

192,300

198,000

204,000

210,000

216,300

222,900

229,500

236,400

2,077,200

New

422,800

435,400

448,700

462,000

476,000

490,000

504,700

520,100

535,500

551,600

4,846,800

Scenario 2 –

75/25 split years 1-20. Nil new and 100% renewal year 20 onwards.

Year: 5 - 10 (1% p.a.) 19 (1% p.a.) 33 & 34 (1% p.a.) 39 (1%)

 

Renewal

151,000

155,500

160,250

165,000

170,000

175,000

180,250

185,750

191,250

197,000

1,731,000

New

453,000

466,500

480,750

495,000

510,000

525,000

540,750

557,250

573,750

591,000

5,193,000

Additional Funding

0

0

0

0

384,640

400,026

416,027

432,668

449,974

467,973

2,551,307

Scenario 3 -

60/40 split years 1-20. Nil new and 100% renewal year 20 onwards. 7.5% in Year 34

 

Renewal

241,600

248,800

256,400

264,000

272,000

280,000

288,400

297,200

306,000

315,200

2,769,600

New

362,400

373,200

384,600

396,000

408,000

420,000

432,600

445,800

459,000

472,800

4,154,400

Scenario 4 -

50/50 split years 1-20. Nil new and 100% renewal year 20 onwards. 6% in year 34

 

Renewal

302,000

311,000

320,500

330,000

340,000

350,000

360,500

371,500

382,500

394,000

3,462,000

New

302,000

311,000

320,500

330,000

340,000

350,000

360,500

371,500

382,500

394,000

3,462,000

 

 

The funding gap generated by the various scenarios is directly dependant on the amount of funding allocated towards new paths over the first twenty years of the plan.

 

Scenario Two, using a combination of existing funding as well specific rate increases, deals with any anticipated funding gaps via these rate increases. These funds are raised in advance of the anticipated funding gaps and would remain quarantined until such time as they are required.

 

Scenario’s three and four are similar to scenario one in that they involve a split of existing funds for new and renewal initially, followed by a shift to 100% renewal and the conclusion of year twenty  (2036/37). All of these options, one, three and four will require additional income around year thirty four of the plan (2050/51). As distinct from option two; the funds will be raised around the time they are required – rather than in advance.

 

Scenario one creates a backlog of $12.6M following the large $21M spike in year thirty three (2049/50) Scenario three is $11M and Scenario four is $9.3M.

 

The predicted additional income required would reduce these deficits over time and build capacity to deal with predicted spikes until year fifty without the need for any other additional income.

How the eventual income is achieved could be undertaken in a number of ways in terms of the timing and method used. The key at this point in time is that the City acknowledges that these gaps will occur in the future and plans to meet them when they occur.

 

Scenario One was chosen as the preferred option as it provides enough funds to deal with the most critical renewal, whilst providing funds to construct the most critical new paths.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 2 – ‘Well Planned, Vibrant and Active Place’ and more specifically Community Objective 2.3 ‐ ‘Infrastructure assets that are well maintained and responsibly managed to provide for future generations’.

 

RISK ASSESSMENT

 

An assessment of the potential implications of not implementing the officer recommendation and endorsing the asset funding policy has been undertaken using the City’s risk assessment framework. The table below shows identified risks where the residual risk, once controls have been identified, as ‘medium’ or greater;

 

Risk

Controls

Consequence

Likelihood

Risk Level

Critical renewal is not carried out as required.

Annual allocations of these funds within the Long Term Financial Plan

Major

Possible

High

 

CONSULTATION

 

Nil

 

OFFICER COMMENT

 

The City of Busselton owns and maintains or manages a footpath and cycleway network portfolio with an estimated replacement value of $31.79 Million. This portfolio comprises 417,290 square metres (approximately 200km) consisting of Dual Use Paths, Public Access Ways, Roadside Footpaths and Paths in Public Open Space, Shopping Precinct and Recreation Reserves.

 

This existing network, combined with the large amount of new paths required, creates an interesting scenario in terms of prioritising new over renewal and vice versa. Whilst the temptation may be to simply build all the required new paths over the short term, with minimal renewal, this will create problems in the long term.

 

The footpaths and cycle ways funding policy will allow the City to undertake the most critical of both elements within the existing allocated funds. Spending a minimum amount each year on renewal well as new will ensure that large, unmanageable funding gaps are not created over time.

 

The modelling undertaken within the FCAMP, in terms of renewal expenditure; has not shown any additional funding required over and above what is allocated within the LTFP (2015/16 – 2024/25) extrapolated out over the long term. It has however, highlighted the need to increase historical levels of renewal over time, within these existing expenditure levels.

 

Historically, (based on average 2008/09 -2011/12) the City has spent around fifteen percent of its annual footpaths and cycle ways budget on renewal of existing footpaths. While this low percentage can be attributed (in part) to the overall age of the network, it needs to be increased over time to ensure the overall longevity of this existing network. The parameters of the proposed policy will allow the City to undertake this increase.

 

CONCLUSION

 

The footpaths and cycleways funding policy will provide a framework for the long term funding of footpaths and cycleways, with the proposed split of new and renewal to allow for the most critical elements of both to be undertaken.

 

OPTIONS

 

The Council could decide to only fund ongoing renewal requirements with the existing LTFP allocations and fund all new paths from an alternative source of funds. Or the Council could decide to implement an alternative funding scenario for the Policy.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Once adopted, this policy would become effective immediately and be implemented during the 2015/16 budget deliberations.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council adopts the footpaths and cycle ways funding policy as contained within the Report.

 

 


Council

85

10 December 2014

L.7

Attachment a

Footpaths and Cycleways Funding Scenarios

 


Council                                                                                      87                                                          10 December 2014

L.8             Finance Committee - 4/12/2014 - GEOGRAPHE LEISURE CENTRE - BUDGET AMENDMENT REQUEST SPA PUMP REPLACEMENTS

SUBJECT INDEX:

GLC Operations

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Community Services

ACTIVITY UNIT:

Community Services

REPORTING OFFICER:

Manager, Community Services - Maxine Palmer

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

 

This report is presented for consideration of acceptance as an item of urgent business for the Council meeting of 10 December 2014. This is the last Council meeting of 2014 and therefore the last opportunity of the year for this item to be considered.

 

This item was considered by the Finance Committee at its meeting on 4 December 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

The purpose of this report is to seek approval to amend the 2014-2015 Geographe Leisure Centre (GLC) budget to transfer $7,538 (excl. GST) from the GLC swimming pool maintenance and supplies budget (336-10591-3126-0000) to the GLC plant and equipment capital budget (336-10591-7723-000) for the emergency supply and installation of two pumps in the spa.

 

 

BACKGROUND

 

The pumps in the spa have been in place since the GLC was built around sixteen years ago. In the last six months both pumps have started to routinely fail. The seals are gone and there have been problems each month during routine maintenance regimes. The spa is emptied each month to refresh the water, each time the pumps have been getting harder to prime and get the system back up and operating again. It is now taking well over an hour to prime the pumps and in the previous two months a technician had to be called out to get them working again. Each call out has cost $800.

 

In 2013/14 the GLC spent $2,000 throughout the year on maintaining and repairing the spa pumps. $400 was spent the year before. On 25 November, 2014, the technician’s last visit, he advised the pumps must be replaced as he would be highly unlikely to get them operating again following another failure.

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorized in advance, by an absolute majority decision of the Council.

 

RELEVANT PLANS AND POLICIES

 

Not applicable.

 

 

FINANCIAL IMPLICATIONS

 

The following budget amendment is recommended, noting this results in a net neutral outcome to Council.

 

Description

 Account String

2014/15 Adopted Budget  $

 2014/15 Amended Budget (PROPOSED)  $

Variance $

GLC  swimming pool maintenance and supplies  budget

336-10591-3126-0000

$22,182

$14,644

-$7,538

GLC  plant and equipment capital budget

336-10591-7723-000

$0

$7,538

$7,538

Net Variance

 

$0

$0

$0

 

STRATEGIC COMMUNITY OBJECTIVES

 

This proposal aligns to the City’s Strategic Community Plan of 2013:

 

Key Goal Area 2:               Well planned, Vibrant and Active Places

Objective:                           2.1 A City where the community has access to quality cultural, recreation, leisure facilities and services.

2.3 Infrastructure assets are well maintained and responsibly managed to provide for future generations.

 

RISK ASSESSMENT

 

An assessment of the potential implications of implementing the officer recommendations has been undertaken using the City’s risk assessment framework. The assessment identifies ‘downside’ risks only, rather than ‘upside’ risks as well. The officer recommendation is considered to be “low” risk.

 

CONSULTATION

 

Officer’s recommend that the 2014/15 adopted budget be amended through the transfer of $7,538 from the GLC swimming pool maintenance and supplies budget (336-10591-3126-0000) to the GLC plant and equipment budget (336-10591-7723-000) to allow the replacement spa pumps to be ordered and installed.  

 

OFFICER COMMENT

 

Although the Geothermal heating system replaced a lot of the older plant equipment in the GLC, there is still plant that has been in place since the buildings construction sixteen years ago. The pumps in the spa are examples of such plant.

 

On the technician’s last visit to fix the spa pumps, he advised they should be replaced because he would be highly unlikely to get them operating again in the event of another failure. Lead time to supply and install new pumps is two weeks, subject to contractor availability. If the pumps fail completely the spa would have to be closed, this would disrupt this service and associated revenues for this period. With the impending holiday period there is a higher risk of limited contractor availability and delays to product supply and delivery.

 

Plant failure cannot be predicted and budgeted, however the GLC has an annual building maintenance services budget for planned and unplanned maintenance, which can be utilised to enable the purchase of the replacement pumps.

 

CONCLUSION

 

Officer’s recommend that the 2014/15 adopted budget be amended through the transfer of $7,538 from the GLC swimming pool maintenance and supplies budget (336-10591-3126-0000) to the GLC plant and equipment budget (336-10591-7723-000) to allow the replacement spa pumps to be ordered and installed.  

 

OPTIONS

 

Council may determine not to support the Officer’s recommendation and resolve not to replace the spa pumps until such time as they fail beyond repair, noting the impacts this would have on service delivery.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the officer recommendation be endorsed, budget amendments will occur in December 2014.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.    Approves an amendment to the 2014/15 budget on the following base:

 

Description

 Account String

2014/15 Adopted Budget  $

 2014/15 Amended Budget (PROPOSED)  $

Variance $

GLC  swimming pool maintenance and supplies  budget

336-10591-3126-0000

$22,182

$14,644

-$7,538

GLC  plant and equipment capital budget

336-10591-7723-000

$0

$7,538

$7,538

Net Variance

 

$0

$0

$0

 

 

 

 

 

       


Council                                                                                      89                                                          10 December 2014

17.             Confidential Reports  

The reports listed below are of a confidential nature, in accordance with section 5/23(2) of the Local Government Act 1995. These reports have been provided to Councillors, the Chief Executive Officer and Directors only.

RECOMMENDATION

 

That the meeting is closed to members of the public to discuss the following items which are confidential for the reasons as shown.

17.1           Finance Committee - 4/12/2014 - APPLICATION FOR RATE EXEMPTION - SOUTH WEST REFUGE INC.

This report contains information of a confidential nature in accordance with Section 5.23(2(f)(iii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, could be reasonably expected to prejudice the maintenance or enforcement of a lawful measure for protecting public safety